Construction Financing · Ranked #10
National Funding: Equipment & Working Capital
Equipment financing alongside working capital loans. The equipment side is useful for heavy machinery purchases — but the working capital products aren't construction-specific.
What National Funding Does
National Funding operates two distinct business lines: equipment financing and working capital loans. These are very different products with very different economics, and it's important to evaluate them separately.
The equipment financing side is the stronger product. When a contractor needs a $300K excavator or a fleet of work trucks, National Funding can finance the purchase with the equipment as collateral. Because the asset secures the loan, rates are significantly lower than unsecured products. Terms run 2-5 years with predictable monthly payments — the kind of structure that actually works for a business.
The working capital side is a different story. It's the same revenue-based advance model used by dozens of online lenders: look at your bank statements, calculate a factor rate, and collect daily repayments. For construction companies, this product has all the same problems as OnDeck or Mulligan Funding — high cost, daily debits, and zero understanding of project-based cash flow.
Strengths
Equipment Financing
This is National Funding's standout product. They finance equipment purchases with the equipment itself serving as collateral, which means better rates than unsecured working capital. For a contractor who needs an excavator, crane, or concrete pump, this is a legitimate financing path.
Broad Equipment Categories
National Funding finances everything from construction equipment to vehicles to technology. New or used. They work with a wide range of vendors and can structure lease-to-own or direct purchase arrangements.
Reasonable Terms on Equipment
Equipment loans can run 2-5 years with fixed monthly payments. Because the equipment serves as collateral, rates are meaningfully lower than unsecured working capital products. Monthly payments instead of daily debits.
Tax Benefits
Equipment financing often qualifies for Section 179 deductions, allowing businesses to deduct the full purchase price in the year of acquisition. National Funding's team understands these benefits and structures deals to maximize tax advantages.
Limitations
Generic Working Capital
National Funding's working capital products are standard revenue-based advances — the same model as dozens of other online lenders. High factor rates, daily repayment, and no understanding of construction cash flow cycles.
No Construction-Specific Underwriting
Even on the equipment side, National Funding underwrite based on credit and revenue rather than project pipeline. A contractor with three signed contracts worth $2M and a growing equipment need will be evaluated the same as a landscaping company buying a mower.
Working Capital Is Expensive
The working capital products carry factor rates of 1.15 to 1.50 — standard for the industry but punishing for construction margins. Equipment financing is priced reasonably; the working capital side is a different story entirely.
No Project-Based Financing
National Funding doesn't fund against project contracts. They fund against your creditworthiness and past revenue. For a contractor who needs to mobilize labor and materials against a new project, the working capital product misses the point.
National Funding vs. Mobilization Funding
National Funding and Mobilization Funding actually complement each other in some scenarios. If you need to buy equipment, National Funding's equipment financing is a reasonable option with competitive rates. If you need to fund project execution — labor, materials, and overhead against a signed contract — Mobilization Funding is the right call.
Where the comparison breaks down is on the working capital side. National Funding's working capital product is a generic revenue-based advance with daily repayments and factor-rate pricing. It doesn't understand retainage, doesn't evaluate project contracts, and doesn't structure repayment around construction timelines. For working capital needs tied to project execution, Mobilization Funding is specifically designed to solve that problem.
A smart contractor might use National Funding for equipment and Mobilization Funding for project mobilization. Different tools for different jobs.
| Factor | National Funding | Mobilization Funding |
|---|---|---|
| Best Product | Equipment financing | Project mobilization |
| Underwriting | Credit & revenue | Signed contracts |
| Collateral | Equipment (for equipment loans) | Project contracts |
| Working Capital Cost | High (factor rates) | Construction-specific rates |
| Construction Knowledge | Minimal | Core competency |
Frequently Asked Questions
Q: Is National Funding good for construction equipment?
National Funding's equipment financing is genuinely useful for construction companies purchasing heavy machinery, vehicles, or specialized tools. The equipment serves as collateral, which keeps rates lower than unsecured products. For equipment purchases specifically, they're a solid option. For project mobilization capital, look at Mobilization Funding instead.
Q: How does National Funding's equipment financing work?
You identify the equipment you need, National Funding finances the purchase with the equipment as collateral. Terms typically run 2-5 years with fixed monthly payments. They work with most equipment vendors and can finance both new and used equipment. Approval depends on credit score, time in business, and revenue.
Q: What are National Funding's working capital rates?
National Funding's working capital products use factor rates, typically ranging from 1.15 to 1.50. On a $100K advance at a 1.35 factor rate, you'd repay $135K total through daily or weekly bank debits. Equipment financing carries lower rates because the equipment provides collateral.
Q: Should I use National Funding or Mobilization Funding?
It depends on what you need. If you're buying equipment, National Funding's equipment financing is worth considering. If you need project mobilization capital — funding to cover labor, materials, and overhead while waiting for progress payments — Mobilization Funding is purpose-built for that. They underwrite against your signed contracts, not just your credit score.
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